Marfrig Global Foods’ latest purchase of BRF shares now gives Marfrig a majority ownership of the company.
According to a securities filing that can be found on the BRF investor relations website, Marfrig Global Foods recently disclosed that it had purchased additional shares in BRF. With the most recent transaction, Marfrig Global Foods now owns 842,165,702 common shares and American Depositary Receipts (ADRs) representing 50.06% of the total issued and outstanding capital of BRF.
Despite the fact that Marfrig holds the majority of the shares of BRF, the securities filing stated that with the most recent purchase, Marfrig does not aim to change the current shareholding control composition nor the administrative structure of BRF, nor have any contracts or agreements been executed by Marfrig regulating the exercise of voting rights or the purchase and sale of BRF securities.
Marfrig Global Foods has steadily been increasing its stake in BRF since May 2021, when Marfrig bought 196,869,573 BRF shares, which accounted for 24.23% of the company.
Marfrig’s initial decision to invest in BRF followed earlier talks of a merger between the two Brazil-based protein producers stalled. BRF is heavily involved in the pork and poultry sectors, while Marfrig primarily operates in the beef industry.
The association between the two companies also became closer in 2022, when Marcos Antonio Molina dos Santos, chairman of Marfrig Global Foods, was elected to also become the chairman of BRF. He has since referred to Marfrig and BRF as “sister companies.”
In April 2023, the chairman of the two companies downplayed the notion that the companies would merge – at least in the near term.
He said at the time, it didn’t make sense to combine the sister companies. BRF has been underperforming during recent fiscal quarters, and turning that company around is the higher priority, he said.
“The first thing is fixing (BRF),” he said. “After that, there are strategic movements that we can do in the future.”
Marfrig’s association with BRF gives it a renewed presence in the global poultry industry. Previously the owner of Moy Park and Keystone Foods, Marfrig sold Moy Park to JBS in 2015 and Keystone Foods to Tyson Foods in 2018. JBS has since sold Moy Park to JBS-affiliated company Pilgrim’s Pride.
